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Black powder was still in use, but smokeless was available.
For all the Internet Concern about "black powder rated guns" I bet grandpa shot smokeless if he could afford it. Which was a concern, 12 ga 3 dr 1 1/8 oz shells were 35 cents a box in black, 45 cents with smokeless in the 1901 Sears catalog.
Sears did not list L.C. Smith hammer guns in 1901 but a hammer Remington was $20 and a hammer Ithaca was $21 at the time. Damascus barrels actually cost more than "armory steel."
I don't know the current Received Wisdom on shooting old steel barreled guns.
You would certainly be advised not to shoot Damascus.
I do not know what length shell Hunter Arms was chambering "Elsies" for at the time. It would be safest to stick with 2 1/2".
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